Devcon layoffs save $1.2m
BOCA RATON, Fla.--Calling it "a sign of progress for the company," Devcon International president Robert Farenhem on Jan. 9 announced the company expects to save $1.2 million in annual payroll and benefits expenses as the result of a workforce reduction.
Devcon's wholly owned subsidiary, Devcon Security Services, cut 42 positions, approximately eight percent of its staff.
"The positions that were eliminated were a direct result of all of the consolidation and back office integration we were doing last year," Farenhem said. "It's a good chance to get some efficiencies out of the acquisitions we've made over the last couple of years," he said.
Last summer, Farenhem told Security Systems News that Devcon was working on integrating six different databases and two different financial systems.
The project, he said, addressed "fundamental systems designed to improve customer service and operations as well as prospects for future growth" (for more background, search "Devcon" at www.securitysystemsnews.com).
Devcon shed the last of its non-security-related businesses last year. In its most recent (Q3) financial statement, Devcon reported a slowdown in losses as the result of revenue growth. It lost $3.4 million (or 55 cents per diluted share) on revenue of $14.3 million. For the same period one year earlier, it lost $8.1 million on revenue of $13.8 million. SSN